5 Best Sector ETFs Of February

Image: Shutterstock

February was the most volatile month with wild swings in the stock market. This is especially true as surging bond yields continued to weigh on stocks sparking overvaluation concerns and triggering a tech sell-off. The 10-year Treasury yields spiked to one-year high of 1.6% last week after remaining below 1% for most of 2020.

However, continued progress in more vaccines, rapid vaccination rollout, and the prospect of further U.S. stimulus led to expectations for higher economic growth. The combination of factors will result in increased industrial activity and pickup in consumer demand, thereby maintaining the market sentiments. In particular, U.S. consumer spending rose the most in seven months in January, indicating that the economy is growing faster than expected. Improvement in corporate earnings growth also bodes well for stocks.

Investors should note that the flight to cyclical sectors benefited the major bourses last month despite the sell-off in high-growth and high-beta stocks. The Dow Jones has been the biggest beneficiary of this rotation, climbing 4% in February. Meanwhile, the S&P 500 logged in a monthly gain of about 3.5% and the tech-heavy Nasdaq Composite Index underperformed with just 1.8% gains.

Against such a backdrop, we have highlighted five sector ETFs that outperformed in February and are likely to continue doing so, should the same trends prevail.

Amplify Transformational Data Sharing ETF (BLOK - Free Report) – Up 31.8%  

A crypto crazy run made the blockchain ETF the biggest winner last month. Bitcoin, the largest cryptocurrency, topped above $58,000 for the first time ever last month, before retreating last week. BLOK is actively managed, providing investors global exposure to a basket of the leading companies engaged in the development and utilization of blockchain technologies. It has AUM of $1.2 billion in its asset base and trades in an average daily volume of 952,000 shares. The product holds a basket of 54 stocks with American firms dominating about 56.8% of the portfolio, followed by Asia Pacific (36.8%). The ETF has an expense ratio of 0.71%.

1 2 3
View single page >> |

Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.